Foreign nationals in Romania not complying with tax residency assessment will be subject to fine

Foreign nationals in Romania who register a presence of more than 183 days within a period of 12 consecutive months will be imposed a new fine by Romanian tax authorities as of 1 January 2018, if they do not undergo the mandatory tax residency assessment procedure.

A new fine was recently established by Romanian tax authorities, which will apply starting 1 January 2018.  The fine will be applied by the local tax office (ANAF) to all foreign nationals in Romania omitting to comply with the tax residency assessment obligation. Such obligation was enforced in the Romanian tax law since 2012.

The tax residency assessment must be fulfilled by submitting certain information via a special questionnaire to the local tax office within a deadline of 30 days from the date of reaching a physical presence of 183 days on the Romanian territory. The 183 days must be counted within a period of 12 consecutive months starting with the date of the foreign national’s first entry into the country. The presence does not have to be continuous, as sporadic periods of presence also count.

The submission of the tax residency assessment file can be done in person by the foreign national, or through a proxy.

The new fine is between 50 – 100 LEI and can be applied by tax authorities once the 30 day filing deadline expires.

The same fine will be imposed to Romanian residents who leave the country for a period of more than 183 days within 12 consecutive months. Romanian residents who leave the country have the same obligation towards the tax authorities; they must submit similar type of file with at least 30 days before leaving the country.

For more details regarding the Romanian tax residency and its practical implications for foreign nationals in Romania, please check also our article: Romanian tax residence explained in details.

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